The Rise of Virtual Currency: A Look at Bitcoin and Ripple

There are currently around 10.05 million Bitcoins in circulation, each divided into 100 million smaller units, determined by the mining process. There can be a maximum of 21 million Bitcoins in the market. To buy Bitcoins, you must transfer real money to Bitcoin exchange companies such Mt. Gox , the Tokyo-based and largest Bitcoin exchange company, and create a “wallet ” on your mobile phone or computer to store the money. Meanwhile, Ripple was developed byOpenCoin, a Silicon Valley startup led by financial technology pioneer Chris Larsen (founder of E-LOAN and Prosper) and veteran developer Jed McCaleb, who initially built the Bitcoin exchange Mt. Gox. Ripple's main difference from Bitcoin is that it's not just a single online currency; its allows you to send and receive money in dollars, euros, yen or, even Bitcoin, for the fee of one "ripple." As of this April, one ripp...